Tax deductibility of fines under certain conditions

Specifically, the majority of the Commission requests the tax deductibility of foreign fines if they infringe the Swiss public order, if they sanction an act that would not be sanctionable in Switzerland and if they exceed the maximum provided for by Swiss law for the infringement in question. The majority of the Commission thus wishes to take account of the fact that fines imposed abroad may also contain arbitrary and politically motivated components. With the new proposal, the risk for Swiss companies abroad could be kept to a manageable level. A strong minority wants to follow the Council of States: Fines and sanctions with a penal purpose should not be tax deductible, regardless of whether they were imposed in Switzerland or abroad. The companies concerned must be prepared to accept responsibility for risks taken abroad instead of blaming the general public. In addition, the majority proposal presented various difficulties in its practical implementation and the different treatment of domestic and foreign fines contradicted the principle of equal treatment. In the overall vote, the Commission approved the proposal by 13 votes to 10 with 2 abstentions.